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SMEV Seeks Rs 20,000 Crore To Promote EV In India

“The current import duty concessions should continue, so that the vehicles do not end up becoming costlier”, said SMEV Director-General Sohinder Gill.

Electric vehicle (EV) makers’ body SMEV on Wednesday sought an allocation of Rs 20,000 crore in the next two years for promoting EVs in the country and also urged the government to impose a national green cess on conventional vehicles in the upcoming interim Budget to fund the drive.

Industry’s take
While talking about their budget wish list, the Society of Manufacturers of Electric Vehicles (SMEV) also said phase-II of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) must be announced with a six-year plan and time-bound implementation.

SMEV Director-General Sohinder Gill said to Times Now that SMEV expects the government to target at least one million EVs in top-10 most-polluted cities across India. This was further supported by Lohia Auto Industries’ Chief Executive Officer, Ayush Lohia who went to the extent of seeking an extension of the FAME scheme by a minimum of 10 years, therefore making it long-term. Lohia stated that in addition, GST (goods and services tax) on all categories of electric vehicles, including batteries, should not exceed 5 per cent with input tax credit availability.

Gill further stated that SMEV said Indian supply chain for critical powertrain components of EVs will come up only if there are enough such vehicles on the road. However, he suggested that till then, the current import duty concessions should continue, so that the vehicles do not end up becoming costlier.